FASB Holds January 11 Meeting

At its January 11, 2023, meeting, the FASB discussed its project on disaggregation of income statement expenses. Specifically, the Board made tentative decisions regarding the following:

• Types of costs incurred that an entity would provide when disaggregating expenses, including costs expensed as incurred and costs capitalized to inventory.
• Definition of employee compensation in the Codification.
• Disaggregation of residual expenses and costs incurred.
• Selling expenses.
• Whether an entity should present disaggregated information on the face of the income statement or disclose such information in the financial statement notes.
• An example illustrating the main types of disaggregation the Board would require as part of the project.

For more information, see the tentative Board decisions and meeting handout on the FASB’s Web site.